New era: The reduced lifetime allowance is upon us

LTA changes make their entrance

clock • 3 min read

Martin Tilley assesses the impact of the reduced lifetime allowance and looks at the various protection regimes in place for savers...

Having entered the new tax year, the third reduction in the lifetime allowance (LTA) is upon us. Individuals vesting in the current tax year will be tested against the new LTA of £1m unless they have arranged one of the numerous LTA protections introduced at each reduction. While the vast majority of people will not be affected by the reduction, those that are, such as individuals with a sizeable pension fund or likely to reach the LTA limit, one would have thought they would already have taken advice to ensure the appropriate protection was in place. However, this is obviously not...

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